![]() ![]() ![]() If you invest in bonds, pay attention to when your Treasury bills are maturing. How to protect your investments in the debt ceiling standoffĮxperts assume that even if the United States briefly goes past the X-date, it will be resolved quickly and the government will make good on its obligations, CNN reported. Treasury Department building at dusk in Washington. With Treasuries, the key question is when investors will be repaid, not if.įILIE - This June 6, 2019, photo, shows the U.S. US Treasuries are considered to be the world’s safest assets because they are backed by the full faith and credit of the United States, but the uncertainty over a debt ceiling deal adds risk. Those who receive veterans benefits should also have an emergency stockpile prepared - disability payments and pensions for some low-income veterans and their surviving families could be affected by a default.īond investors should expect volatility even during deal negotiations. Some military-facing banks could also be of assistance. ![]() US cities with military bases risk economic damage in debt ceiling fightĮvery military service has an organization that can help with temporary loans for those who could be in a crunch - think a car breaking down or an emergency ticket home for a family death, Hunsberger said. Federal government contractors could also see a lag in payments, which could affect their ability to compensate their workers, CNN previously reported.Īn aerial view shows homes and apartments in a neighborhood in El Paso, Texas, on December 19, 2022. Some Department of Defense workers may see their paychecks delayed - including 1.4 million active-duty members of the military and more than 2 million federal civilian workers. Social Security payments could be delayed Here’s how you can prepare for a potential debt default. The Treasury Department has enough to cover some obligations, but it’s uncertain what protocol it would adopt to handle payments. If the government doesn’t raise the ceiling, the United States won’t automatically go into default. There isn’t much precedent on what to do in case of a default, since it’s never happened before. Nevertheless, consumers can take steps to safeguard their finances from some of the effects of the crisis. If an agreement isn’t reached to prevent the United States from defaulting on its debt, the country could descend into economic disarray, affecting millions of Americans from investors to Social Security beneficiaries. Treasury Secretary Janet Yellen reaffirmed June 1 as the hard deadline to raise the debt ceiling on Monday, saying she expects the United States will be unable to pay all of its bills in a little over a week. ![]()
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